Margadarshi Chit Fund Scam: AP CID Begins Interrogation Of Ramoji Rao, Cherukuri Sailaja In Hyderabad

HYDERABAD: The Andhra Pradesh CID on Monday, commenced questioning of  Cherukuri Ramoji Rao and Cherukuri Sailaja at her residence in the city, as part of the investigation related to the irregularities in the Margadarsi Chit Fund Pvt Ltd. A team of 30 members in four vehicles arrived at the residence in the morning hours.

It may be recollected that the AP CID officials on March 28 served notice under Section 160 of the CRPC asking her to be available for investigation on four dates - the 29th or 31st of this month or on the 3rd or 6th of April either at her residence or the corporate office at Fateh Maidan Road in Hyderabad for questioning by the officials. They chose Monday, April 3 as a convenient date. While Ramoji Rao is the chairman of the Margadarsi Chit Fund company, his daughter–in–law Sailaja is the managing director.

The AP CID has already registered cases against Ch Ramoji Rao, Ch Sailaja, and Margadarshi Chit Funds managers and also their auditor for violating the provisions of the Chit Fund Act. The  AP CID has already arrested four branch managers and the auditor in this case.

On March 11th the CID registered a case against both of them for allegedly collecting money from the people for chit-fund schemes in violation of  RBI guidelines. The Margadarsi company was facing allegations of diverting subscribers' money into other companies and mutual funds. 

The case against Ramoji  Rao was filed under Sections 120B, 409, 420, 477(A) read along with Section 34 of IPC. The case was registered under Section 5 of the AP Protection of Depositors of Financial Establishments Act, 1999. The CID has named Cherukuri Ramoji Rao as accused number 1 (A1) and Cherukuri Sailaja as accused number 2 (A2) while the respective bank manager is A3. 

Also Read: Margadarsi Chit Fund Scam: AP CID Issues Notice To Ramoji Rao's Daughter-in-law Cherukuri Sailaja